Grayscale Seeks Approval for Ethereum Futures ETF

Grayscale Investments, a well-known subsidiary of the Digital Currency Group (DCG), has taken another significant step by applying for an Ethereum futures-based Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC).

The most recent filing by Grayscale for an Ethereum ETF adheres to the Securities Act of 1933, which serves as the foundational regulatory framework governing commodities and spot bitcoin ETFs, as reported by the Wall Street Journal (WSJ). It’s worth noting that this marks the second Ethereum ETF application by Grayscale in recent times. The first was filed under the Investment Company Act of 1940, the regulatory framework under which most securities-based ETFs are registered.

Grayscale is leveraging its recent legal victory against the SEC, where the Federal Appeals Court ruled that the SEC lacked grounds to deny the company’s proposal to transform its Grayscale Bitcoin Trust (GBTC) into a full-fledged Bitcoin ETF.

While the regulatory landscape for spot Bitcoin ETFs remains uncertain, the SEC has generally shown more favor toward Futures ETFs linked to top digital currencies. This has led to widespread expectations that the SEC might approve Grayscale’s latest Ethereum ETF application, as well as those from other industry players.

The digital currency ecosystem is currently undergoing a significant shift in the types of investment assets it intends to offer, aiming to attract mainstream institutional investors shortly. With major players like BlackRock, VanEck, Fidelity Investments, and WisdomTree vying for the approval of spot Bitcoin ETF products, a successful lobbying effort with the SEC could pave the way for new industry dynamics. Top market analysts have assessed the likelihood of a spot Bitcoin ETF approval as high, further fueling anticipation for the SEC’s decisions on pending applications.

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